Hello Readers, Welcome to Indian Apex. (How to Convert Your Liabilities into Your Assets?)
Shocked by the title of this article. I am sure that you are wondering why I am talking like a mad person. How can someone convert their liabilities into assets? Well, I have some most important points that can justify my above statement easily.
Let’s try to read this article, till the end to gather a good amount of information related to converting your liabilities into your assets.
Liability, What comes into your mind when you hear this word? Definitely, you must answer that liability is something that you have to pay someone after some specified time. You feel that this thing is actually like debt on you. Well, my perception of the same thing is quite different.
Let’s discuss this furthermore in this article. I request you to kindly read this article till the end.
Have you ever gone to the bank to deposit money? Have you ever wondered how the bank earns money?
If you also think that the money you deposit in the bank is an asset for them, then this thing is completely wrong.
If you read the account book of the bank, then you will come to know that the money deposited by the people is always considered a liability for the bank, because the bank has to return that money to the people.
The bank uses this liability to earn money. It gives loans to its other customers from the money deposited by the people and earns money from the interest paid by them.
Sometimes banks may invest this liability money into mutual funds or into government securities to earn a high amount of interest on it.
The bank is the best example of how someone can create their liabilities into their assets. If the bank can do this thing, then you can also do this thing very easily.
Now you must be wondering that the bank is able to do this thing just because it is receiving a huge amount of money in their accounts.
But if we also use our money properly, then we can also make our liabilities an asset. Let’s try and understand this thing in much more detail.
Pro Tips to Convert your Liabilities into Your Assets.
Many people believe that the Indian ecosystem is designed in such a way in which the poor become poorer and trich people become richer. But this is not entirely true.
The rich are becoming richer because these people invest their earned money in the right way and increase their wealth. Making a proper investment is the key to success in the future.
If we talk about poor people, then they spend as much as they earn, and that’s why they are not able to invest and remain poor. The same thing is also with the middle-class family.
They earn a decent amount of money, pays tax on it, pay their liabilities, and spend almost all their money on all the rubbish things and they are also not able to invest more money somewhere.
But here in this article, I will give you some such tips, with the help of which you too will be able to earn money from your liabilities.
Always buy a house as big as you need.
Generally, every common man dreams of having a luxurious house in his life. He earns money and also builds a good house. But he is not able to use such a big house properly. So why should someone have to invest their hard-earned money in building a luxurious house?
Instead of building a luxurious house, you can also use the same money to build some such property which you can give on rent. This rental amount can become your asset for a lifetime and hence you can convert your liability into your asset.
I know very well that some people might not agree with that but here I want to tell you that this is just my perception. Your point of view might be different from mine and I totally respect your decision.
Invest your money behind education wisely
Every Indian Parent has the mentality that they should provide the best education to their children so that they can get a good job in the future or can do their own business.
A normal parent spends lakhs of rupees to get a good education for their children. This money is what? This money is actually a liability for them.
Many times it happens that despite spending lakhs of rupees on education, people are not able to get the right amount of jobs and because of this, it takes a lot of time to cover the amount you invested in your valuable education.
Always invest money in that type of education, which literally can pay you off a good amount of money after completing it. Unfortunately, the Indian education system is soo poor that it actually believes in theoretical knowledge rather than practical knowledge.
Time can become your biggest Asset
There is a proverb named “Time and Tide wait for none”, which means the time once gone never comes back. That’s why many people say that time should always be used wisely.
It is all up to you how you should invest your valuable time in a productive manner. Suppose, you are a youngster and wasting your most important time watching web series or playing games like PUBG, then it will never pay you back a single penny until you adopt gaming or acting as your career.
I am a huge believer of the fact that time is your biggest liability, but if you can use it in a productive manner then it can give some huge amount of money and good fruits in the near future. If you use it properly and wisely then it can become the biggest asset for you.
I really hope that this article is definitely going to be useful to you. Please share your views on this article in the comments section.
Final words on How to Convert Your Liabilities into Your Assets.
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